The round was led by Axeleo Capital – Green Tech Industry Fund joined by the EIC Fund, NBank Capital, BonVenture, and seed investor Dr.-Ing. Frank Jenner. The capital will support scaleup, commercialisation, and construction of BIOWEG’s first-of-its-kind bacterial cellulose plant in Germany and accelerate market entry across Europe.

Founded in 2019 by Dr. Prateek Mahalwar and Srinivas Karuturi, BIOWEG converts food-industry side streams into bacterial cellulose via precision fermentation, refining it with green chemistry into drop-in alternatives to fossil-based polymers. The company operates a pilot plant production site in Quakenbrück (up to six tonnes capacity) and a material science, formulation and applications lab in Monheim within Bayer Crop Science’s campus.

The latest financing round, which brings the total amount raised by the company to date to €22 million, will enable the step-up from pilot to industrial production, including construction of an industrial bacterial-cellulose facility in Germany – designed to be able to meet the growing demand of industrial customers in sustainable microplastics-free ingredients. The plant design provides a pathway from the current 6,000-litre fermentation scale to large-volume manufacturing and will be co-located with a major sugar producer in Germany to secure feedstock synergies and lower operating costs. BIOWEG will also upgrade its Quakenbrück pilot line to serve near-term customer orders during construction, while expanding commercial, regulatory, and production teams to further expand into the European market.

Europe’s restriction on intentionally added fossil based microplastics is reshaping ingredient supply chains across personal care, home care, pharmaceuticals, and agriculture. Customers now require compliant, high-performance ingredients manufactured at scale within the EU; BIOWEG’s platform is designed to meet that need while enabling straightforward reformulation.

Dr Prateek Mahalwar, Co-founder & CEO, BIOWEG, said: “Today’s funding allows us to move decisively into industrial manufacturing and to support customers as they transition away from microplastics. Our focus is on matching and expanding polymer-level performance with bio-based, biodegradable ingredients produced at European scale.”

Marc Lechantre, Partner, Axeleo Capital, added: “BIOWEG combines a compelling regulatory tailwind with a credible industrialisation plan and strong customer pull on key markets. We’re backing the team as it's perfectly positioned within the ongoing transformation of supply chains towards microplastic-free products.”

Nikolaj Klebert, Investment Director, BonVenture, added: “Bioweg combines technological excellence with strong impact, led by international founders and a diverse team that champions inclusivity in deep tech – driving Europe’s shift to a microplastic-free future.”

"BIOWEG's promising business model has the potential to significantly increase the sustainability of important markets such as cosmetics, cleaning products, and seeds and, in doing so, make the economy in Lower Saxony more future-proof. We are delighted to contribute to setting up production in our state, creating high-quality jobs and strengthening Lower Saxony as a technology location," said Michael Kiesewetter, NBank's Chairman of the Board.

Viktoria Vorwachs, Investment Manager at NBank Capital, adds: "We see BIOWEG as an exceptionally promising company. With its compelling entrepreneurial spirit and high level of expertise, BIOWEG is creating a bio-based and highly scalable solution that is urgently needed in the market. This round of financing will enable the company to successfully enter the market after years of preparation and product development.  We are delighted to accompany BIOWEG on this journey as an investor.”

BIOWEG’s portfolio addresses priority use cases: Micbeads provide biodegradable leave-on micro-powders for cosmetics with premium sensorial performance; RheoWeg delivers bio-based rheology and suspension control for personal and home care; AgriWeg offers seed and fertiliser coatings that enable controlled release and improved handling. With production capacity scaling in Germany, BIOWEG will focus on qualifying supply with customers and supporting reformulation programmes across Europe.

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